CANADIAN NATIONAL ENTERS BIDDING WAR WITH CANADIAN PACIFIC FOR KANSAS CITY SOUTHERN

I cannot imagine he traffic in Laredo on the old Texas Mexican tracks east of the bridge over the river. There is only one road I-35 that underpasses that portion of track. Last time there some of the TM track appeared once to be double track but ROW still there for second track but cannot recall if the bridge over I-35 was double tack capable. Westbound trains often had to stop waiting for space to cross the river. McDonalds next to track was a favorite for train crews and TM train watching

The proposed second bridge will make that former TM track even more busy at times.

Gilbert, CP does not have access to CRSA at Detroit or New Jersey. CP never had access to the former West Shore line in New York or New Jersey. CP did have access to the Amtrak line on the east bank of the Hudson but has surrendered those rights. CP has no longer has rights or trackage south of Mohawk Yard in Schenectady, NY and in Albany, NY. CP cannot serve any Industry between Chicago, IL and Windsor, ON save by drayage for Intermodal from Chicago (or Toronto).

My prediction is that BNSF, UP and NS will either sit this one out or request minor access rights. CSX really doesn't have much to gain as they don't really touch KCS except at New Orleans and in the St. Louis area. Any attempt by one of the four US based companies will likely result in the dismemberment of KCS with the Kansas City to Shreveport main being abandoned in the middle. Only the lawyers will make money if this happens. The wildcard is CN.

west point wrote: ↑Mon Mar 22, 2021 2:42 pm I cannot imagine he traffic in El Paso on the old Texas Mexican tracks east of the bridge over the river. There is only one road I-110 / US-54 that underpasses that portion of track. Last time there some of the TM track appeared once to be double track but ROW still there for second track but cannot recall if the bridge over 110/54 was double tack. Westbound trains often had to stop waiting for space to cross the river. McDonalds next to track was a favorite for train crews

The proposed second bridge will make that former TM track even more busy at times.

The Texas Mexican Railway ends at Laredo, TX not at El Paso.

One further thought is that if one of the US Class I railroads tries to acquire the KCS leading to the dismemberment of KCS it might give the Mexican Government an opening to cancel KCS's franchise in Mexico and put it out to new bids which might raise more money for the politicians pockets. KCS has a franchise to operate the Northeastern Railroad in Mexico until 2047, the ROW and tracks remain in the ownership of the Mexican Government. There is no guarantee that the next franchise will be for 50 years.

JayBe thanks" I had a complete brain fart. Been way too long in both those places maybe 15- 20 years.. But I did find the McDonalds on a google map still there.

Gilbert B Norman wrote: ↑Mon Mar 22, 2021 9:03 amMessrs. Lurker, TRAXX, et al, that name CPKC simply represents a "moniker" to use as the proposal moves forth, which as I noted immediately will "be a long, long time".

If CPKC was offered as the operating name of the "plain vanilla" independent voting trust I might agree with you.
But, clearly stated: "Following STB approval of the transaction" ... "The combined entity will be named Canadian Pacific Kansas City ("CPKC")."

Brand name ... I suppose they could use something simpler.

Gilbert B Norman wrote: ↑Mon Mar 22, 2021 9:03 amLest we forget RAILPAX?

The "National Railroad Passenger Corporation" that operates the Amtrak brand trains? Sure, who can forget them. RAILPAX referring to the security directives put forth by the TSA (not specifically for Amtrak)? That is a different meaning.

I would not hold a temporary name used only prior to the passage of the legislation founding NRPC against CPKC. If "railpax" had actually made its way into the law you might have a point. But it didn't. Once the deal was done the business name was (as stated) NRPC.

This I guess will be the first true" NAFTA "railroad! I started in the industry in 1999 and can't believe the amount of carload traffic that has dwindled off since then even barring coal. I don't feel this will be a positive for North American rail, though I understand manufacturing won't really return to American shores.

Makes me wonder if a Biden administration may leverage approval for greater Amtrak access to lines in order to allow this to be approved.

Mr. Moore, as in the Southern Belle. Aguilla Azteca, and El Regiomontano, will need to be restored?

F74265A wrote: ↑Mon Mar 22, 2021 11:50 amWithout ns or csx, how does cp serve the northeast?

Why "without NS or CSX"? Do you believe the eastern class 1s will kick trains off of their rails out of spite over the merger?

I am not expecting huge changes in operations other than more trains running through Kansas City instead of being exchanged from CP to KCS at that point. CPKC will retain CP's trackage and haulage rights over the NS (and CSX) lines that they currently use. CP HQ will move from Minnesota to Kansas City. The combined company may save some money by being able to combine US operations. Maybe they will run a third Christmas Train.

Greg Moore wrote: ↑Mon Mar 22, 2021 8:21 pm Makes me wonder if a Biden administration may leverage approval for greater Amtrak access to lines in order to allow this to be approved.

Whoops Mr. Moore; I forgot The Southwestern, the MILW's KC-MKE train that connected with The Arrow at Savanna; thence to Chicago.

The Arrow still around when I was in college (at least until I dropped during '65 to go into service); but didn't make it to see A-Day.

"Back in my day", the line to KC was 40mph, absent slow orders. There was a "good sized one a day" back during my '70-'81 "career".

Considering the ex-MILW line between Sabula, Iowa and Kansas City, Missouri will become the backbone of the new CPKC, what is the state of this line? What is the current speed, number of passing sidings (and their length), does it have CTC? PTC? How many trains run the line today?

Mr. Shorrtline, all I can offer you is my immediate history lesson, and must defer to others to what extent the SOO (CP) has improved it.

Sorry for swiping at your handle around here, but I don't think the several Short Lines that came and went "did too much" for it.

That's alright Mr. Norman. I understand well what I&M and DM&E/IC&E did to that line.

Hate to post twice in such a short period of time but CP and KCS have already sent in letters to the STB.

Notice of Intent to Initiate Case: https://dcms-external.s3.amazonaws.com/ ... 301790.pdf
Motion/Petition/Request: https://dcms-external.s3.amazonaws.com/ ... 301793.pdf
Motion for Protective Order: https://dcms-external.s3.amazonaws.com/ ... 301792.pdf

The big takeaways: (In no particular order)
1. CP and KCS plan to file their application around June 28th.
2. KCS will become a subsidiary of CP, similar to how the Soo or D&H are subsidiaries of CP today.
3. CP and KCS request this be treated as a "major transaction" due to the involvement of two Class I railroads.
4. CP and KCS do not think this acquisition warrants the normal 10-month review due to the end-to-end nature of this merger. More interestingly:

Were these considerations alone not enough to warrant review on a 10-month or shorter
timeline, the Board should consider the fact that Applicants are undertaking this transaction
against the backdrop of a competing bid for control of KCS by private equity acquirers.

Looks like CP are not the only ones trying to acquire KCS. Maybe that was the main reason KCS agreed to merge with CP?
5. CP and KCS are citing precedent set by the CN-IC merger in 1999.
6. CP and KCS request that the board service their final decision 295 days after the application is filed. (So around Monday April 19th, 2022.)

Gilbert B Norman wrote: ↑Sun Mar 21, 2021 7:11 pm Mr. Cowford, I'm thinking Warren is not going to sit idly by while CP controls traffic - the Mexican traffic - that KCS had been giving him at, say, KC.

Another point; lest we forget, the Mexican government still owns a good chunk of NdeM/KCSM as well.

Well, KCSI owns outright KCSM and the concession for operating the "Northeast Railroad" segment of the former FNM.

There are already a plethora of trackage rights agreements between KCS/UP/BNSF in cobbling routes together to access the primary border crossings.